AppLovin (NASDAQ:APP) Shares Down 8.4% on Analyst Downgrade

AppLovin Co. (NASDAQ:APP) shares were down 8.4% on Friday after UBS Group lowered their price target on the stock from $630.00 to $450.00. UBS Group currently has a buy rating on the stock. AppLovin traded as low as $239.00 and last traded at $241.75. Approximately 3,886,718 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 5,720,114 shares. The stock had previously closed at $263.83.

Other research analysts also recently issued research reports about the stock. Needham & Company LLC reaffirmed a “hold” rating on shares of AppLovin in a report on Monday, March 17th. Loop Capital reaffirmed a “buy” rating and issued a $650.00 price objective on shares of AppLovin in a research note on Friday, March 28th. Piper Sandler decreased their target price on AppLovin from $575.00 to $425.00 and set an “overweight” rating on the stock in a research note on Thursday. Morgan Stanley raised shares of AppLovin from an “equal weight” rating to an “overweight” rating and cut their price objective for the company from $470.00 to $350.00 in a report on Thursday. Finally, Wells Fargo & Company reduced their price objective on shares of AppLovin from $538.00 to $386.00 and set an “overweight” rating on the stock in a research report on Tuesday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $424.84.

Insider Transactions at AppLovin

In other AppLovin news, CTO Vasily Shikin sold 17,500 shares of the firm’s stock in a transaction dated Monday, March 10th. The shares were sold at an average price of $241.65, for a total value of $4,228,875.00. Following the completion of the sale, the chief technology officer now owns 88,389 shares of the company’s stock, valued at $21,359,201.85. This trade represents a 16.53 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Arash Adam Foroughi sold 45,000 shares of the business’s stock in a transaction that occurred on Friday, February 21st. The shares were sold at an average price of $422.21, for a total value of $18,999,450.00. Following the transaction, the chief executive officer now owns 2,914,492 shares of the company’s stock, valued at $1,230,527,667.32. This trade represents a 1.52 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 306,900 shares of company stock worth $106,401,841. 14.69% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AppLovin

A number of institutional investors and hedge funds have recently added to or reduced their stakes in APP. GHP Investment Advisors Inc. purchased a new position in shares of AppLovin during the fourth quarter worth approximately $25,000. Fuller & Thaler Asset Management Inc. bought a new position in AppLovin in the fourth quarter worth approximately $25,000. Riverview Trust Co increased its holdings in AppLovin by 1,640.0% during the 4th quarter. Riverview Trust Co now owns 87 shares of the company’s stock worth $28,000 after purchasing an additional 82 shares during the period. Tucker Asset Management LLC bought a new stake in AppLovin during the 4th quarter valued at $28,000. Finally, Hemington Wealth Management raised its position in AppLovin by 78.4% during the 4th quarter. Hemington Wealth Management now owns 91 shares of the company’s stock valued at $29,000 after purchasing an additional 40 shares in the last quarter. Institutional investors own 41.85% of the company’s stock.

AppLovin Stock Down 8.4 %

The firm has a market capitalization of $82.20 billion, a PE ratio of 53.25, a PEG ratio of 3.02 and a beta of 2.39. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.41 and a current ratio of 2.41. The company has a fifty day simple moving average of $329.81 and a two-hundred day simple moving average of $292.58.

AppLovin (NASDAQ:APP) last issued its earnings results on Wednesday, February 12th. The company reported $1.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.61. AppLovin had a net margin of 33.54% and a return on equity of 188.55%. Analysts forecast that AppLovin Co. will post 6.87 EPS for the current fiscal year.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.